Various tax incentives are available to incorporated businesses which carry out certain scientific research and experimental development (SR&ED) activities in Canada. A Canadian Controlled Private Corporation (CCPC) can earn an investment tax credit of 35% on qualifying SR&ED expenditures. If not taxable, a CCPC whose taxable income (together with associated corporations) did not exceed $200,000 in the prior year, can claim a 100% refund of the investment tax credit earned at the 35% rate, on up to $2 million of SR&ED expenditures made in the taxation year. The refund does not apply to expenditures on depreciable property but the tax credits can still be used to offset current and future years' tax liabilities.

Detailed records and specific tax filings are required to support your SR&ED claim. Consult your DJB professional to see if a claim may by possible for your business. At DJB we can work with Canada Customs and Revenue Agency representatives to determine if a claim is possible, before the full claim is submitted.